How does the Equivalent Annual Cost (EAC) Calculator work?
Free Equivalent Annual Cost (EAC) Calculator - Given 2 Items/machines with an Investment Cost, expected lifetime, and maintenance cost, this will calculate the EAC for each Item/machine as well as draw a conclusion on which project to invest in.
This calculator has 7 inputs.
This calculator has 7 inputs.
What 1 formula is used for the Equivalent Annual Cost (EAC) Calculator?
v = 1 / (1 + Cost of Capital)
Discount Factor = (1 - vn) / Cost of Capital
Discount Factor = (1 - vn) / Cost of Capital
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What 6 concepts are covered in the Equivalent Annual Cost (EAC) Calculator?
- annuity
- A stream of payments
- equivalent annual cost (eac)
- investment
- an asset or item acquired with the goal of generating income or appreciation.
- maintenance
- net present value
- a method of balancing the current value of all future cash flows generated by a project against initial capital investment
Cash flow at time t/( = i)2 - present value
- the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
PV = FV/(1 + i)n
where I is the interest rate per period, PV = Present Value, and FV = Future Value
Equivalent Annual Cost (EAC) Calculator Video
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